Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-01-08
ANNUAL REPORT
OF THE RAILROAD COMMISSION.
ERS OF CALIFORNIA.
Forcible Suggestions by the Retiring
Members Railroad Com
mission Condemned.

The old Board of Railroad Commission
ers has closed its work and the new one
formally organized at meeting held II
San Francisco on Monday. In the after
noon of that day. the Secretary brought tt
Sacramento the annual report of the retir
ing Commissioners to submit it to thu
Governor. 1t is signed by Commissioner
Carpenter and Humphreys, and covers l4(
pages of closely written manuscript. L
begins with citations from the Constitution
the substance of which is that the act of ;
majority of Commissioners is the act of thu
Commission.
Following this are analytical reference:
to the appendix. which consists of thirty
eight pages, showing the whole number o
meetings during the term to have been 1f3
and the members present at each meeting
the final account for the year last past
with amounts and purposes of expenditure
a statement showing the miles of roac
operated by the Southern Pacific Company
in California, and also in the State of Ne
uada. and in the Territories of Utah. New
Mexico and Arizona, to which is added the
the mileage of narrow gauge roads in this
State synopsis of annual returns OF rail.
road companies. showing the volume OF
business, the highest, the lowest and aver
age rate OF charge for fare and freight, anc
concluding with the correspondence anc
orders relating to the continuing contro-
yersv between the Commission and Tho
Atlantic and Pacific Company, with refer
enCe TO which w. A BisSell, the agent o.
N hos hGpD pItpd nv order
introduced by Commissioner Carpenter e
appear before the Commission ON The 10th
day Of February, 1887.
Following these references to the appen-
dix, there IS a brief reference to the annual
returns of railroad companies, now in the
hands of the State Printer. Then come
orders, correspondence and proceedings OF
the Commission for the past year, which
have appeared from time to time III the
press. and now cover thirty-four pages OF
manuscript The rest of the report, from
page 40 to l02 is appended:
After a prescutation of the constitutional pow
ers and duties of the Board, a full review OF It's
adopted rules of procedure and iis orders, cor
respondence and proceedings for the past year.
and a statement of the nature OF the c0ntro-
versy now existing between the Atlantic and
Pacific Railroad Company and the Board,
wherein W. A. Bissell, the only known repre-
sentative in this State is cited to appear before
the Board on the 10th day of February next. the
report proceeds as follows:
A FOREIGN CORPORATION.
It IS due 10 Mr. BisSell and The attorneys OF
the contesting company to say they have not
sought to evade controversy of which they
have definitely taken one side. Aswill be seen,
the company is foreign corporation doing bus
iness in this state. Having purchased OF the
Southern Pacific Railroad Company the road
from Moiaye to the Needles. it took shelter
under its foreign charter. But as the contesting
company and its grantees or lessees, if it have
any. take the road subject TO the same pubic
and corporate use and rights as their prede-
cesSOr in interest, we have neld aud now hold
that for all the purposes of the controversy they
are domestic corporations.
This is the only case i'll which we have been
confronted with an explicit refusal TO comply
with our demands, which have been generally
treated as necessary evils to be patiently en-
dured. The proceedings to test the foreign pro-
tectorate set up by the atlantic and Pacific kali
ton and in the exercise of the mandatory
power TO which our action is limited. But IN
the exercise of the same power the statute of
1880 expressly preScribes the mode of procedure
and requires verified complaints in writing, and
fifteen days notice to companies affected there
by How we have gone aside from the cast iron
rule of the law, at the instance of corporations.
by q sort OF Unauthorized advisory course, VIII
be seen by glance at the foregoing pages.
We have never in a single instance ignored
even an imaginary grievance, however inform
ally stated, II only preferred IN sGO0 Jdltn by
the real party in interest or his authorized attor
ney But that justice might not be made vul-
gar lest we have embodied i'll the Standing rules
and orders OF our administration the governing
principle that every man shall mind his own
business.
This was resented by patriots without constit-
ueuts and attorneys without clients, upon the
hypothesis that the Commission came in and
must go out with them. ltwas nearly suicide
for the Commission, by the records of which Il
now appears that not one of the statements re
turns or exhibits submitted and filed by railroad
companies has ever been con reverted or denied
by single shipper OF producer in the state.
RuMoRED RAILROAD oUTRAGEs.
With the sovereign people in the vocative
vo;es at a premium and the fate of faction /;
the balance. what could be more natural o.
necessary than railroad outrages? But, strang,
as it may appear the indignant rancor with
which they are denounced is more than equaleC
By the delicate reserve with which it i
sought to conceal their most damaging features
Geucraily confided 10 accommodating attorneys
by cOmplaingnts who shrink from tub ic not1
iiety TO avoid public scandal and save the feel
Tugs of private families and of the cor
poratiou'. sister, names and facts are stu
diously suppressed But ell the same
in the form OF accusing report. th'
outrage Is out. with every aggrayatiun 0
partisan fAlsehood and sensational publicity
In some cases again, as IN that OF Richards &
Harrison VS.. the Central Pacific Railroad Con
pany. the price OF commercial virtue WAS
vet grei, er outrage on the cOnsenting complain
ant than upon tiuise VINO hal uot compliance
at ALL In all such cfses The refusal of the TN
willing railroad 90 panies to pay The penalty
and cOndone die oten-e l. denounced as dis
crmiuation between r. ms
We have treated these STIMULATED complaint
and rumors far more seriously than was required
for any Their puIp So tian 90 eNp0sc their Origiy
aud object. Our opinion " them is y eciSel!
the same rs chat of other Commission md /
well stated by that oil Colorado, rs follows
There has bsen much talk AMI but few m
fs,.s. uf.,ttt. So
IN his Office. He must have something specific
and definite upon which To proceed" Again
he SAYS Railroad companies are as itucl
afraid Of a sound public sentiment a. hgSi
ness coward is of q railroad company, Ihi
opinion has been confirmed by nauy III
designations. and volumes OF tcstimon.
taken before this Commission and hefors cgis
laiive committees, in all OF which iud7ted pre-
teDders. s upidiy ignorant of the laws aud prin
ciples OF transportation, have again and asS'l
posed. before u disguised pub ie.
THE RAILROAD PEosLEM.
What Is business to those engaged in it, Is t,
iutetiul ddiug PIE onders complication OF eX
traneous subjects. Thus we have the so-calle'
railroad problem, upon which all the idle p0lit
zeal experts have BEEN at their wits ends. AS
suming that the rates of fare and freights should
be based upon the ascer;aiut dteost 81 consiruc
ton. TO find oae unknown quantity they confus'
themselves with another, aud so have TWO prob
lens Instead of one. The company owning anC
operating the road / sued stock TO itself anC
bonds or their equivalent market va ue TO con
tractors The stock in the hands of the com
pany or It's sSsignces represents the corporate
capital and control incident to ownership, an(
goes up with every prospect OF increased earn
iugS and dividends. and down with every de
preston of trade and growl of blackmailing 20
litical bears The bonds. with accruing interest
are only evidence of what must ultimately ;,
paid from earnings and sale of the road and it
assets aud appurtenances as fixed expenses, e
investing capitalists, whose claims are preferred
to those of stockholders for dividends. neithe
of which is guaranteed by the State, and tn,
only security for which are the value and earn
ings of the road.
thus in their iucousequential attempts t,
bring forward accomplished facts aud disput,
construction accounts, of no practical interes
OF advantage to the public, they find il Just a
necessary 10 xpert the books and the loss anS
profit accounts of contractors, capitalists, ma
terial men, merchants, bankers and brokers, a
of the corporation dealing with them. Blu
books OF account balanced and closed by al
who have any right 70 question them could b
of no earthly use to a railroad company whicl
does not desire falsify the estimates service
OF dead engineers, and would only pander 4
the idle pretense that subsidies granted to con
struct a road can be taken at second hand b.
those who ride upon II. may very properly b
boxed or burned up-no matter which. Tn
outlawed loss and damage will be lamented an
exaggerated by rome but those antediuvis,
aftSrbirths whose pluperiect second future busi
ness it is to recount the cost of doubtful under
takingS and to discount the credit due to boil
adventure in the light of unexpected result:
To them and their preposterous subsidy sham
our first citation of the law is our last Tn
granting acts us ratified by the Legislature G
This State provide that subsidized roads shal
perfprn Government service at fair and res
snnable rates ofcompenSatiOn not exceeding tn
49, M orffa fs,-f